How to Draw Commodity Trading Fib Projection on Upward Commodities Trend
Drawing Fibonacci Projection Levels on an Upward Commodities Trend
We use Fibonacci Projection levels to estimate where the commodity trend movement will reach. There are 2 commonly used Fibonacci Projection levels; 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit levels.
On the Fibonacci Projection indicator example illustrated and explained below you can see that the Fibonacci Projection indicator tool is drawn along the direction of the commodity trend, since the commodity trend is up - the Fibonacci Projection indicator is drawn upwards.
These Fibonacci Projection levels are displayed as horizontal lines above the Fibonacci Projection indicator, showing profit taking areas. In the commodity example illustrated and explained below if you had used of 100.0% Fibonacci Projection level you would have made nice profit from the trade setup.
How to Draw Commodity Trading Fib Projection on Upward Commodities Trend - How to Draw Fibonacci Projection on Up Commodities Trend
From the above Fibonacci Projection indicator tool example, the upward commodity trend continued and both 61.8% and 100.0% Fibonacci Projection levels were all hit after which the commodities price retraced again after getting to the 100.0% Fibonacci Projection level.
From the Fibonacci Projection indicator tool example above, after drawing this Fibonacci Projection tool there are two levels that are used to show the profit taking areas, these two Fibonacci Projection levels are drawn as horizontal lines across the commodities chart marked as 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level.
Explanation of How to Draw Fibonacci Projection Levels on Commodities Trading Charts
We use Fibonacci Projection levels to estimate where the commodity trend movement will reach. There are 2 important Fibonacci Projection levels; 61.8% and 100% Fibonacci Projection Levels, these are used for taking profit.
To draw Fibonacci Projection levels on the commodities chart we wait until the commodities price retracement is complete and the commodities price starts to move in the original direction of the Commodities trend. Where the commodities price retracement reaches is used as chart point 3. Fibonacci Projection Indicator is drawn using three chart points as shown on the commodity example illustrated and explained below of how to draw the Fibonacci Projection Indicator Tool.
The Fibonacci Projection example illustrated and explained below shows the 3 Chart Points where the Fibonacci Projection indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where the commodity trend started, Chart point 2 is where the commodity trend pulled back and retraced and Chart point 3 is where the commodity retracement reached as shown on the Fibonacci Projection Indicator Tool example illustrated and explained below.
How to Draw Fibonacci Projection Commodity Technical Indicator Tool on Upwards Commodities Trend
Please note where these Fibonacci Projection levels are drawn - Fibonacci Projection levels are drawn above the Fibonacci indicator, these are the chart points where a commodity trader will set the take profit orders using these Fibonacci Projection Levels - 61.8% and 100.0% Fibonacci Projection Levels.
